CMS finds growth in health spending remained slow in 2011

AHA NewsJan 11, 2013

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U.S. spending on health care grew 3.9% in 2011, marking the third straight year of record-low growth, the Centers for Medicare & Medicaid Services (CMS) reported Jan. 7 inHealth Affairs. It marked the lowest annual rates recorded in the 52 years the government has been collecting such data.

Growth in spending for hospital care slowed to 4.3% from 4.9% in 2010, due to slower growth in hospital prices, use ofhospital services and Medicaid spending for hospital care, CMS said.

Spending for physician and clinical services accelerated, to 4.3% from 3.1% in 2010. Medicare spending increased 6.2%, up from 4.3% in 2010, while Medicare enrollment increased 2.5% as the first baby boomers became eligible for the program. Spending for private health insurance increased 3.8%, up from 3.4% in 2010, while outof- pocket spending increased 2.8%.

CMS said it was unclear whether the low growth in health spending represented the start of a trend or reflected the continuing effects of the recession, which slowed the economy from December 2007 to June 2009.

Health spending grew more than 5% each year from 1961 to 2007. It rose at double-digit rates in some years, including every year from 1966 to 1984 and from 1988 to 1990.